Max group’s realty arm Max Estates on Monday said it has started construction of its new commercial project, comprising mainly office space, in Noida with an investment of Rs 400 crore. The company has roped in New York Life Insurance Company as financial partner to develop this project Max Square, which will have 7 lakh sq ft of office and retail spaces.
This is the third commercial project of Max Estates, which is part of Max group’s listed entity Max Ventures & Industries Ltd (MaxVIL).
Max Estates will develop the project ‘Max Square’ with New York Life Insurance Company as the financial partner.
It will have 51 per cent and the New York Life Insurance Company will have 49 per cent stake in the special purpose vehicle (SPV) Max Square Ltd, which has been formed to develop this project, MaxVIL said in a statement.
This is the first real estate project by New York Life Insurance Company in India as a financial partner.
“The project will be built at a cost of approximately Rs 400 crore with an equity infusion of Rs 175 crore and a debt funding of Rs 225 crore,” the statement said.
All statutory approvals have been received. The project construction has commenced and the company targets to deliver the same by March 2023.
Sahil Vachani, MD and CEO, Max Ventures and Industries, said the success of our recent commercial real estate projects has enabled us to achieve financial closure for Max Square in a fairly quick period.
“Max Square has been conceptualised as an eco-friendly complex. It has been designed in line with our differentiated philosophy of WorkWell which enables higher productivity, a vibrant workplace community combined with wellness and recreation measures,” he said.
Max Estate has so far delivered two commercial real estate projects in NCR; one is Max Towers, Noida and second is Max House, Okhla, Delhi.
Total leasable area in Max Towers (owned directly and leasable rights for area owned by Investors) stands at around 6 lakh sq ft of this 74 per cent has been leased out so far.
The first phase of the Max House, Okhla, comprising of 1,05,000 sq ft leasable area has been launched for leasing recently. Construction of the second phase of the project, comprising around 1,00,000 sq ft will start in the fourth quarter of this fiscal.
MaxVIL owns and operates a real estate business through its 100 per cent subsidiary Max Estates. It also runs a packaging films business through Max Speciality Films, a 51:49 strategic partnership with Toppan, Japan.
MaxVIL also has a real estate services and management company Max Asset Services and an investment subsidiary, Max I., which supports real estate entrepreneurial ventures. MaxVIL is listed on NSE and BSE.